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Lessons from the political economy of the New Deal

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  • John Joseph Wallis

Abstract

The New Deal produced a fundamental change in the structure of American government. The national government came to play a much larger role in the financing of social welfare programmes, while administration of the programmes was largely located at the states. Both the purely national and the shared 'federal' parts of the welfare system were characterized by impersonal rules. The political economy of how the rules came about and how the New Deal experience may have contributed to Americans changing their views on the danger of dealing with the national government is the primary focus. The paper closes with speculations about the possible effect of changing views on American participation in the Second World War after 1939. Copyright 2010, Oxford University Press.

Suggested Citation

  • John Joseph Wallis, 2010. "Lessons from the political economy of the New Deal," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 26(3), pages 442-462, Autumn.
    • Handle: RePEc:oup:oxford:v:26:y:2010:i:3:p:442-462
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    File URL: http://hdl.handle.net/10.1093/oxrep/grq028
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    Cited by:

    1. Timothy J. Hatton & Mark Thomas, 2012. "Labour Markets in Recession and Recovery: The UK and the USA in the 1920s and 1930s," CEH Discussion Papers 001, Centre for Economic History, Research School of Economics, Australian National University.
    2. Yaniv Reingewertz & Thushyanthan Baskaran, 2020. "Distributive spending and presidential partisan politics," Public Choice, Springer, vol. 185(1), pages 65-85, October.
    3. Crafts, Nicholas, 2012. "Western Europe's Growth Prospects: an Historical Perspective," CEPR Discussion Papers 8827, C.E.P.R. Discussion Papers.
    4. Nicholas Crafts & Peter Fearon, 2010. "Lessons from the 1930s Great Depression," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 26(3), pages 285-317, Autumn.

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